What is expected in the development of XLM?
Stellar is moving forward with several important updates:
- Protocol 23 Mainnet Activation (Q3 2025) – Improvements to handle more transactions and support decentralized finance (DeFi) and business applications.
- Meridian 2025 Summit (Mid-September 2025) – A major event to highlight new partnerships and financial infrastructure developments.
- Composable Data Platform Launch (Q4 2025) – New tools for developers to access better analytics and network data.
- Protocol 24 Privacy Features (2026) – Enhanced privacy options using advanced cryptography for secure and confidential transactions.
Deep Dive
1. Protocol 23 Mainnet Activation (Q3 2025)
Overview: The Protocol 23 upgrade, called “Whisk,” was approved in a September 3 vote and brings several key improvements. It allows smart contracts to run in parallel, boosting transaction speed to about 5,000 per second. It also standardizes how events are reported for developers and improves how resources are managed. These changes help Stellar compete better in DeFi and tokenizing real-world assets.
What this means: This is positive news for Stellar (XLM) because better scalability can attract big players like Visa, which is integrating stablecoins, and Franklin Templeton, which has tokenized $446 million in treasury assets. However, there is a risk that businesses might take longer than expected to adopt these upgrades.
2. Meridian 2025 Summit (Mid-September 2025)
Overview: Stellar’s annual Meridian Summit will showcase new partnerships, including updates with companies like MoneyGram and IBM. The event will also introduce new tools for cross-border payroll payments. The goal is to strengthen Stellar’s position in payment systems that follow the ISO 20022 standard, which is widely used in global finance.
What this means: The impact depends on how deep these partnerships go. If Stellar can make real progress in regulated stablecoin corridors, such as pairing Japanese Yen (JPY) with XLM, it could increase network use. But if the event is mostly hype without concrete results, it could cause price swings.
3. Composable Data Platform Launch (Q4 2025)
Overview: The new Composable Data Platform (CDP) 1.0 will offer customizable dashboards, real-time network data, and APIs for businesses. This builds on Stellar’s growth in total value locked (TVL), which reached $122.4 million in 2025. The platform aims to help developers meet compliance requirements with better data access.
What this means: This is good news for Stellar’s long-term usefulness. More transparency and data tools could speed up adoption of tokenized real-world assets. However, some users might find it challenging to integrate these new tools at first.
4. Protocol 24 Privacy Features (2026)
Overview: The upcoming Protocol 24 upgrade will add privacy features like zero-knowledge proofs, which allow transactions to be verified without revealing details, and asset masking to keep holdings confidential. This is part of Stellar’s plan to become a “privacy-ready” blockchain platform.
What this means: If successful, these privacy features could set Stellar apart from competitors like XRP. But there is a risk that regulators might scrutinize these privacy tools because of concerns about anonymity.
Conclusion
Stellar’s roadmap focuses on improving scalability with Protocol 23, encouraging business use through the Meridian 2025 Summit, and increasing transparency with the Composable Data Platform. Privacy upgrades in 2026 add an extra layer of potential. Keep an eye on how total value locked grows after Protocol 23 and what announcements come out of Meridian. The big question is whether Stellar’s mix of compliance and innovation will help it reach its technical price target of $0.86.
What updates are there in the XLM code base?
Stellar’s software is moving forward with preparations for Protocol 23 and updates to its developer tools (SDKs).
- Soroban RPC Improvements (August 2025) – Added features to track transaction status and simulate advanced authorization.
- Protocol 23 XDR Upgrade (August 2025) – Backend updates for better scalability and security.
- Java SDK 2.0.0-beta0 (Upcoming) – Major redesign to simplify contract handling and key management.
In-Depth Look
1. Soroban RPC Improvements (August 2025)
What’s new: Stellar’s smart contract system, Soroban, now includes a pollTransaction function. This lets developers check the status of contract transactions more easily. It also supports simulating transactions with non-root authorization, meaning developers can test complex permission setups without full access.
Why it matters: Developers can retry failed transactions more effectively and test multi-signature setups without needing all permissions. The Java SDK now shows more details about asset movements and contract events, making it easier to track what’s happening on the network.
Impact: This reduces errors in decentralized apps (dApps) and makes it easier to build secure, enterprise-level decentralized finance (DeFi) applications. This is a positive sign for Stellar (XLM) as it lowers technical barriers for businesses.
(Source)
2. Protocol 23 XDR Upgrade (August 2025)
What’s new: The Java SDK has been updated to support Protocol 23’s new data definitions (XDR). Some older methods were removed, and new validation tools were added. Account and liquidity pool identifiers now follow a standardized format.
Why it matters: Operators running Stellar nodes need to update their software before the main network switches to Protocol 23. While this requires some effort, it sets the stage for better compatibility and compliance with global financial messaging standards like ISO-20022.
Impact: In the short term, this is neutral because of the upgrade work required. But in the long run, it’s positive for Stellar’s ability to work smoothly with traditional financial systems.
(Source)
3. Java SDK 2.0.0-beta0 (Upcoming)
What’s new: The Java SDK is getting a major update that makes it easier to interact with smart contracts and adds support for signing and verifying messages securely.
Why it matters: The new KeyPair class supports Ed25519 message signatures, following the SEP-8 standard. Developers can prepare transactions offline, improving security. Some stricter checks on asset codes and fees have been added to prevent errors.
Impact: These tools help developers build secure cross-chain applications and enable “gas-free” transactions where users don’t pay fees directly. This is promising for Stellar’s role in institutional custody and other advanced use cases.
(Source)
Conclusion
Stellar is updating its technology to support faster, more secure asset transfers and compliant decentralized finance. With key SDK improvements and Soroban enhancements, these changes could speed up partnerships like Visa’s stablecoin integration. Keep an eye on mainnet upgrade schedules and how developers adopt these new tools.
Why did the price of XLM go up?
Stellar (XLM) increased by 4.33% in the last 24 hours, outperforming the overall crypto market, which rose by 2.28%. This follows a weekly gain of 6.99%, although it contrasts with an 11.22% drop over the past month. The main factors behind this movement are:
- Protocol 23 Upgrade Momentum – The upgrade was approved on September 3, improving scalability and smart contract performance.
- Cross-Chain Real-World Asset (RWA) Expansion – Stellar joined the ERC-3643 Association, allowing compliant asset tokenization with Ethereum.
- Technical Breakout – The price surpassed the $0.38 resistance level, supported by positive technical indicators like MACD and RSI.
Deep Dive
1. Protocol 23 Upgrade (Positive Impact)
Overview:
Stellar’s Protocol 23 upgrade went live on September 3 after community approval. This update introduces parallel execution for smart contracts through Soroban, which cuts processing delays by 40% and lowers fees for complex transactions.
Why it matters:
These improvements make Stellar more attractive to developers working on decentralized finance (DeFi) and real-world asset projects. Historically, Stellar’s total value locked (TVL) tends to increase by 20-30% after major upgrades. Recent partnerships, like WisdomTree deploying a $99 billion fund on Stellar, show growing institutional interest.
What to watch:
The number of Soroban-based smart contracts being deployed, which has grown by 18% week-over-week.
2. Cross-Chain Tokenization Developments (Mixed Impact)
Overview:
On September 10, Stellar joined the ERC-3643 Association, enabling compliant asset transfers between Stellar and Ethereum blockchains. This follows Visa’s August integration of Stellar for its PYUSD stablecoin settlements.
Why it matters:
This move supports long-term interoperability between blockchains, positioning Stellar as a key player in tokenizing real-world assets—a market expected to reach $16 trillion by 2030, according to Boston Consulting Group.
Potential downside:
Ethereum currently dominates tokenization, which could limit Stellar’s short-term gains despite its technical strengths. The announcement also led to a temporary 32% drop in trading volume as some investors took profits.
3. Technical Rebound (Positive Impact)
Overview:
XLM’s price moved above its 7-day simple moving average ($0.366) and key resistance at $0.391. The Relative Strength Index (RSI) rose to 50.89, indicating a neutral to bullish trend, and the MACD indicator turned positive for the first time since August 20.
Why it matters:
These signals suggest that selling pressure is easing and buyers are stepping in. Futures funding rates are neutral (+0.0056%), meaning the price movement is driven more by actual demand than by speculative trading.
Key level to watch:
If XLM closes above $0.405, which is the 50% retracement of July’s highs, it could trigger automated buying by trading algorithms.
Conclusion
Stellar’s recent price increase is supported by strong fundamentals from the Protocol 23 upgrade, strategic moves in cross-chain asset tokenization, and positive technical signals after a month-long correction. Although the ERC-3643 news caused some short-term volatility, Stellar’s focus on institutional-grade real-world asset tokenization aligns well with the growing trend in crypto for 2025.
Key question: Can XLM maintain its position above $0.405 through the September 14 Consumer Price Index (CPI) report? A sustained breakout would confirm renewed bullish momentum.
What could affect the price of XLM?
Stellar’s price is influenced by upcoming network upgrades and overall market trends.
- Protocol 23 Upgrade (Positive) – Improvements in speed and capacity could encourage more users and developers.
- XRP Connection (Mixed) – Stellar’s price often moves with XRP, which can add unpredictability.
- Institutional Partnerships (Positive) – Deals with big companies show growing real-world use.
In-Depth Look
1. Protocol 23 Upgrade (Positive Impact)
What’s Happening:
Stellar plans to launch Protocol 23 in the third quarter of 2025. This upgrade will allow the network to process multiple smart contracts at the same time and standardize how events are handled. The goal is to reach 5,000 transactions per second, which would make the network faster and more efficient. This is especially important for decentralized finance (DeFi) and tokenizing real-world assets like stocks or bonds. Recently, Stellar partnered with Visa and Franklin Templeton to tokenize $445 million in U.S. Treasury securities on its platform.
Why It Matters:
Faster transactions and lower fees could attract more developers and financial institutions to use Stellar. This would increase demand for Stellar’s native token, XLM, which acts as a bridge for moving money across different currencies. After Stellar launched its Soroban smart contracts in 2024, the total value locked (TVL) on the network increased sevenfold. If Protocol 23 is successful, XLM’s price might test resistance levels around $0.47 to $0.50, matching technical patterns seen in the market (The Defiant).
2. XRP Connection & Market Sentiment (Mixed Impact)
What’s Happening:
Stellar’s price tends to move closely with XRP, another popular cryptocurrency, showing a 0.95 correlation over the past 100 days. When XRP’s price rises or falls, XLM often follows. Recently, XRP surged to $3.35, which helped push XLM up by 87% in one week. However, unlike XRP, Stellar is not involved in Ripple’s ongoing legal battles, which lowers its regulatory risks.
Why It Matters:
If XRP continues to rally, XLM could reach around $0.62, based on technical analysis. But relying too much on XRP’s price movements can be risky. If XRP suddenly drops, XLM might also fall quickly. This risk is higher because Bitcoin still dominates the market with a 57.59% share (Weex).
3. Institutional Adoption & Stablecoin Growth (Positive Impact)
What’s Happening:
Stellar’s stablecoins—digital currencies pegged to real money—reached a market cap of $353 million in 2025. This growth is partly due to PayPal integrating its stablecoin PYUSD on Stellar and Franklin Templeton’s tokenized assets. The number of institutions holding between 1 million and 10 million XLM tokens increased by 37% in the second quarter, showing strong interest.
Why It Matters:
More use of stablecoins on Stellar strengthens its role in international money transfers. For example, MoneyGram uses USDC stablecoins on Stellar to cut remittance fees by 60%. If XLM’s price breaks above $0.42 with daily trading volume over $50 million, it could confirm a strong upward trend (Bitget).
Conclusion
Stellar’s price depends on how well the Protocol 23 upgrade performs, XRP’s market moves, and growing use by institutions. While new features and partnerships offer growth potential, the close link to XRP and Bitcoin’s market dominance create risks. The key question is whether XLM can break free from XRP’s influence and benefit from its own DeFi improvements. Keep an eye on the $0.40 support level and network activity in Q3.
What are people saying about XLM?
The Stellar (XLM) community is divided between excitement over a potential breakout and concerns about a possible price drop as the upcoming Protocol 23 upgrade approaches. Here’s what’s trending:
- Price battle – Optimists target $0.50, while some warn of a drop to $0.39.
- Protocol 23 buzz – The third-quarter network upgrade is sparking talk about improved scalability.
- XRP connection – Traders are debating whether XLM can follow XRP’s recent 87% weekly price jump.
Deep Dive
1. @ali_charts: $0.33 Buy Zone Before $1 Rally? Bullish
“$0.33 could be the buy-the-dip zone for Stellar $XLM before a run to $1!”
– @ali_charts (297K followers · 2.1M impressions · 2025-08-29 18:04 UTC)
View original post
What this means: Traders see $0.33 as a key support level if XLM’s price falls from its current $0.38. If Bitcoin continues to rise, XLM could potentially triple in value.
2. CoinMarketCap Community: Protocol 23 Mainnet Jitters Mixed
“Will Protocol 23’s scalability upgrades propel XLM to new heights or trigger sell-the-news volatility?”
– CoinMarketCap post (Aug 19, 2025) highlighting mixed feelings ahead of the September network upgrade.
View original post
What this means: The Stellar Development Foundation’s upgrade might attract more institutional investors, but there’s also a risk that traders will sell once the news is out if the upgrade doesn’t meet expectations.
3. Weex Report: XRP Correlation Hits 0.95 Bullish
“XLM’s 87% weekly surge mirrors XRP’s rally, with a 0.95 price correlation stoking $1 target chatter.”
– Institutional analysts note the strong price connection (Sept 8, 2025).
View source
What this means: Traders are betting that XLM might follow XRP’s price moves, but a Relative Strength Index (RSI) of 78 suggests the price might be overbought and due for a pullback.
Conclusion
The outlook for Stellar (XLM) is optimistic but cautious. Technical signals and XRP’s momentum are encouraging, but the real impact of Protocol 23 is still uncertain. Keep an eye on the $0.39–$0.41 price range this week: a strong close above $0.45 with over $50 million in trading volume could confirm an upward move, while falling below $0.38 might lead to a 15% price correction. With $620 million in open interest (Weex), there’s a risk of sharp price swings as traders adjust their positions during this important upgrade.
What is the latest news about XLM?
Stellar is gaining momentum thanks to both technical improvements and growing real-world use. Here’s the latest update:
- Protocol 23 Upgrade Live (September 3, 2025) – Faster transactions and cheaper smart contracts.
- DTCC Patent Mentions Stellar (September 7, 2025) – Stellar’s technology recognized for improving cross-border payments.
- XRP Price Movement Influences XLM (September 8, 2025) – Traders are optimistic, eyeing a price target near $1.
In-Depth Look
1. Protocol 23 Upgrade Live (September 3, 2025)
What happened:
Stellar’s latest software update, Protocol 23, is now active after a community vote. It allows the network to process up to 5,000 transactions per second and lowers the cost of running smart contracts. Before this, developers tested the update on a separate network and had to update their tools to keep up.
Why it matters:
This upgrade makes Stellar more attractive for businesses, especially those handling payments and digital assets. Developers can now build decentralized finance (DeFi) and real-world asset (RWA) projects more efficiently on Stellar’s platform (StellarOrg).
2. DTCC Patent Mentions Stellar (September 7, 2025)
What happened:
The Depository Trust & Clearing Corporation (DTCC), a major player in financial services, filed a patent that highlights Stellar as a key network for a “digital liquidity token” system. This system aims to make transferring assets between institutions faster and cheaper, thanks to Stellar’s low fees and speed.
Why it matters:
While this isn’t a formal partnership, it shows that Stellar’s technology is being recognized by traditional finance. This could open doors for future use in mainstream financial systems, though it’s unclear when this might happen (PaulGoldEagle).
3. XRP Price Movement Influences XLM (September 8, 2025)
What happened:
Stellar’s price jumped 87% in one week, closely following a similar rally by XRP. Analysts note a strong technical pattern suggesting XLM could reach between $0.80 and $1 if it holds above $0.20 support from April. Futures trading shows growing interest from big investors.
Why it matters:
This price action is promising but comes with risks. The momentum might attract casual investors hoping for quick gains, but reaching $1 means overcoming strong resistance levels. Watching the $0.62 price point will be key to confirming the trend (Weex).
Summary
Stellar’s future depends on how widely Protocol 23 is adopted, recognition from traditional finance through patents, and whether it can keep pace with XRP’s price momentum. While the outlook is positive, the price range between $0.62 and $1 will be critical.
Will new investments through C1USD and Visa’s stablecoin partnerships help Stellar overcome any selling pressure this September?